Fresenius Medical Care
Overview
Fresenius Medical Care continues to expand well into the twenty first century with growing revenues in a historically stable industry. They are a top-leading dialysis provider, alongside their well-known competitor DaVita. In terms of net lease investing, they offer lower pricing and high demand for leases; since they are connected with medical dialysis, the outlook denotes a strong and secure future. One of the benefits to be found is that kidney dialysis is a specialized medical field; for this reason there are unique equipment installations within the structures themselves required to operate. This further results in the tenants typically remaining when their leasing terms renew. Additionally, this enhances a strong point of opportunity since regular visits are often required for patients. Taken together, the potential upsides tend towards positive revenue growth.
Lowest Cap Rate
5.00%
Lowest cap rate over past 24 months
Average Cap Rate
6.38%
12 mo avg with 5+ yr lease term
Average Property & Lease
| Average Sale Price | $3,000,000 - $5,500,000 |
| Average NOI | $100,000 - $225,000 |
| Building SF | 10,000 |
| Lease Term | 15 Years |
| Escalations | Varies |
| Stock Symbol | NYSE:FMS |
CREDIT RATING
Tenant Description
As one of the premier servicers of chronic kidney disease (CKD) and end stage renal disease (ESRD), Fresenius Medical Care provides a range of medical, diet, finance, and emotional services for well-being of their patients in a holistic capacity. Fresenius is technically a smaller part of their parent corporation, known as Fresenius Medical Care AG & Co. KGaA with company headquarters based in Waltham, Massachusetts.
To date, more than 187k patients in the U.S. have received treatments, with a staggering twenty one and half million treatments administered. In 2016, statistics show Fresenius clinics numbering 3,579 globally, with 2277 located in the heart of the U.S.A. Fresenius serves all in need both at home and on-site at their medical facilities. From general nutrition, education, and patient instruction, to performing peritoneal dialysis and hemodialysis, they also serve as guides when choosing non-dialysis alternatives.
PROS
- Company guaranty
- Tenants investor-grade
- Availability for NNN leasing
- Closely located to complementary health services
CONS
- Landlord accountability for some NN leases
- Tenant relocation may prove costly when leasing again
COMPANY QUICK STATS
| Founded | 1996 |
| Headquarters | Bad Homburg vor der Höhe, Germany |
| Number of Locations | 4,163 |
| Revenue | $17.16 B |
| Company Website | https://www.freseniusmedicalcare.com |
| Key Principal | Dr. Carla Kriwet |